Think you're paying more for gas in Sanford? You're right

SANFORD — Is gasoline more expensive in Sanford than in other southern Maine towns?

Some local motorists think so, and according to the Sanford News' informal survey of area service stations, they're right.

Prices at the pump in Sanford can vary from 14 to 25 cents more per gallon than prices in other area towns — with the exception of Wells, where the per-gallon price is about 2 to 3 cents higher than it is in Sanford.

On Tuesday morning, Merrill's and Lakeside Market, both on Route 5 in Waterboro, were selling regular gasoline at $3.59 a gallon. At the Milk Room, which is on Route 4 and 202 and closer to Alfred and Sanford, regular gasoline was $3.73 a gallon.

Prices at three stations in Alfred were $3.65, $3.69 and $3.72 per gallon, increasing in price the closer they are to Sanford.

Once they cross the town line into Sanford, however, motorists enter a new zone where prices for a gallon of regular gasoline start at $3.73 — with the exception of J&S Grocery on Alfred Road, which was selling regular at $3.69 on Wednesday morning, according to the website, mainegasprices.com. Most of the chain convenience stores — Cumberland Farms, Irving, 7-Eleven and Big Apple — were at the lower end with prices of $3.73 and $3.75. At the other end, prices were as high as $3.81 and $3.84.

"There are a lot of factors that go into pricing gasoline," said Leo Binette, owner of Lakeside Market. Not only does the price at the pump depend on the price of a barrel of crude oil on the world market — which can fluctuate dramatically over the course of a day — there are multiple other factors that affect prices.

Figuring into the equation are such factors as chain stores vs. independent stores; what kind of agreement the store owner has with his or her supplier; transportation costs; credit card fees; and what type of gas a station is selling — with or without ethanol.

Also affecting the price is how the business finances its fuel purchases and how frequently a station purchases fuel.

For example, Binette said, he gets an 11,000-gallon truckload of gasoline delivered nearly every 24 hours, while other stations may not use that much in a week. If Binette buys 11,000 gallons on a Monday and the price drops 15 cents overnight and he pays 15 cents less per gallon for his Tuesday delivery, he can reflect that decrease in what he charges customers. If, however, a station owner gets an 11,000 gallon delivery on Monday and it takes a week to sell it, he is sitting on a product that cost him 15 cents more per gallon than what his competitors paid for the same product the next day. He can choose to continue to try to sell it at the higher price and risk losing or he can lower his price and take a loss.

Also affecting the price of gasoline in York and Cumberland counties is legislation requiring stations to sell cleaner burning — and more expensive — fuel from May 15 to Oct. 15, to reduce air pollution.

Service is another factor that affects the price.

Adam Brock owns LaChance Brothers, the only full-service station in Springvale. Brock said he has to make a minimum of 7 cents a gallon to cover his costs, which include paying someone to pump gas, wash windows and provide other services. That amounts to $700 on a 10,000-gallon delivery — the amount he sells in a week.

"That's not very much," Brock said. "I don't make any money on the gas."

He also loses 3 percent when customers use credit cards, he said, which lowers his profit margin even further. And, he points out, he has to compete with the company-owned stations and self-serve stations.

"There are very, very few full-service stations around," he said.

Full-service stations are becoming niche businesses, he added, noting that not everyone wants to pump their own gas.

"Being in the gasoline business isn't for the faint of heart," Binette said. The price can fluctuate by 10 cents or more from day to day, unlike years ago when it might stay the same for months.

Of course, competition has a lot to do with how stations set their prices. Binette said that Lakeside Market's location on busy Route 5 is at the hub of what has become a commuter center. Binette said that although he is located in Waterboro, he competes with stations in Saco and Biddeford, where he figures most of his customers work.

"I want them to buy their gas on their way to work or on their way home," not where they work, he said. If they buy gas where they work, they are more likely to buy other things they need there, like milk or bread. Binette said he has to get them to stop at Lakeside for gas to get them to purchase those other items.

Sanford motorists seeking cheaper gas could make a trip to South Paris, where, according to mainegasprices.com, they'll find the cheapest gas in Maine, at $3.45 a gallon. It's about 150 miles, round trip, according to MapQuest.

On the other hand, it could be worse.

Consider the folks on Vinalhaven, which was listed as the place with the most expensive gasoline in Maine at $4.27 a gallon. Or how about drivers in St. Agatha, up near the Canadian border? They were paying $4.21 a gallon on Monday.

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